b) compute the amount of autonomous planned spending given interest rate =5c) compute the equilibrium level of income given that the interest rate =5d) suppose the autonomous consumption changes by 4 percent of any change in household wealth and that the decline in the housing market in 2006-07 and drop in stock market in the summer of 2007 reduces household wealth by $750 billion. Compute the decrease in autonomous consumption that results from the decline in household wealth.e) calculate the new amount of autonomous planned spending Ap and the new equilibrium level of income given that the interest rate equals 5.F) Using answers from c-e compute the value of the value of the multiplier. Question 2) You are given the following questions for the real demand for money: (M/P) ^d = .25-50rIncome levels: $11 940 $12000 $12060 $12120 $12180Interest rates: 4.4 4.7 5.0 5.3 5.6 5.9 6.2A)I am not sure how to graph the demand for money curves when income equals $11940 and $12180b) Suppose real money supply equals $2750. I have to use the combination of interest rate and income above to graph LM curve given the real money supply equals $2750. Label the curve LMoThe answers that I received for these were the income and interest rates that follow (11940 4.7) (12000 5.0) (12060 5.9) (12 120 5.6) (12180 5.9)I don?t understand how to graph this and the questions that follow are all similar but with different money supply amounts.Question 3) Ca=2180-20r c=0.6 Ip=2400-60r G=2000 NX= -300 T=1800a) Compute values of the marginal propensity to save s and the multiplier k.b) Derive the equation for the autonomous planned spending Ap.c) Derive the equation for the IS curve Y=kAp and graph the IS curve when the interest rate equals 4.7 5.0 5.3 5.6 and 5.9.d) Using your answers from part b of the previous problem and part c of this problem explain at what interest rate and at which level of real income the commodity and money markets are both in equilibrium.
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